State transcos must accelerate grid augmentation and digitization

Apart from putting up power T&D infrastructure from an equipment or hardware perspective, the coming years will witness a sharp focus and growing investment on grid digitization.

 

State government utilities are now consciously investing in digitizing their grid with a view to improve grid performance, and of course, to mitigate technical and commercial losses. Power Grid Corporation of India Ltd (PGCIL), which today manages over 83 per cent of India’s interregional electricity transfer, has deployed undoubtedly the highest level of technical sophistication in its transmission assets.

 

For instance, PGCIL has introduced drone patrolling of transmission line-s that will diagnose technical flaws faster, thus reducing downtime. All its substations are remotely monitored. PGCIL is also deploying AI (artificial intelligence) for asset management, apart from pursuing a path-breaking initiative called UDAAN (Unique Digital Analysis of Assets & Network).

 

Now, what is very inspiring and encouraging is that PGCIL is assisting state government utilities in modernizing intrastate grids. The Central PSU is considering both options – joint ventures with state transcos, and offering consultancy services. A JV with Bihar is already in operation, and one with Rajasthan will be formalized soon. States like Assam and Uttar Pradesh have also evinced interest in similar JVs. PGCIL is also offering high-end consultancy services to Odisha, Madhya Pradesh and Uttar Pradesh to set up transmission asset management centres, for remote monitoring of their substations.

 

PGCIL has also announced its intentions of actively participating in intrastate grid development under the tariff-based competitive bidding (TBCB) mechanism. Right now, PGCIL is active in only a few states like Uttar Pradesh and Madhya Pradesh, but in the time to come, PGCIL expects to widen its state-level presence.

 

State transcos need to harness the involvement of private sector players as well as PGCIL, in developing and modernizing their grid. In this reckoning, a growing number of state transcos should put in conscious effort to engage bid process coordinators like PFCCL and RECPDCL to seek developers under the TBCB modality.

 

As more and more state transcos modernize their network and advance towards the monitoring and maintenance standards of PGCIL, India’s intrastate transmission grid will only get stronger. While the interregional and interstate grid is quite robust, thanks to the involvement of PGCIL and private sector players of high stature, intrastate grids are still very weak. India cannot afford this.

 

Only if the power grid is comprehensive robust, right from interregional lines to the intrastate level, will India be able to uphold its pledge of reaching electricity to its smallest and remotest end-consumer.

 

The author, Venugopal Pillai, is Editor T&D India, and may be reached on venugopal.pillai@tndindia.com. Views expressed here are personal.

PGCIL debuts in intrastate power transmission

Earlier this month, Power Grid Corporation of India (PGCIL) debuted in the intrastate power transmission space by winning a concession in Uttar Pradesh, under the tariff-based competitive bidding route. The Central utility clinched the transmission scheme associated with the upcoming 2×660-mw Jawaharpur power generation project in Uttar Pradesh.

For PGCIL, which specializes in interregional and even cross-border transmission lines, winning an intrastate project assumes significance. When the TBCB mechanism was launched in January 2011, the initial projects were all of interregional lines—crucial components of the National Grid. It is only in recent years that state governments started using the TBCB mechanism for intrastate lines. However, this culture did not spread widely with only few states like Uttar Pradesh, Haryana, Rajasthan and a few others, deciding to adopt this modality.

Coming back to the concession won by PGCIL, the project special purpose vehicle is “Jawaharpur Firozabad Transmission Ltd,” which was incorporated on August 20, 2018, as a wholly-owned subsidiary of REC Transmission Projects Company Ltd. This SPV has now been transferred to PGCILwho will develop the project on build, own, operate, maintain (BOOM) basis under a 35-year concession period.

The transmission scheme comprises of three broad elements:

  • LILO of the 765kV Mainpur-Greater Noida single-circuit line at Jawaharpur thermal power project
  • 400kV double-circuit quad line from Jawaharpur thermal power project to Firozabad
  • 400/220/132kV air insulated substation (AIS) substation at Firozabad

 

The project will also include some more LILOs and a 132kV double-circuit line connecting the upcoming Firozabad substation to Narkhi.

UP takes the lead: It is worth observing that Uttar Pradesh has formalized three intrastate power transmission projects this year. This is a very commendable achievement considering that there was hardly any movement in other states in the intrastate TBCB power transmission space.

Of the three projects that UP formalized this year, one project (the Jawaharpur scheme discussed above) has gone to PGCIL and two have been bagged by Adani Power. In June this year, Adani Transmission Ltd (ATL) clinched the Ghatampur power transmission project under the tariff-based competitive bidding route, marking its first presence in Uttar Pradesh.

The transmission project involves around 900 ckm of transmission lines at 765kV and 400kV levels. Some major 765kV lines include Ghatampur-Agra, Agra-Greater Noida and Ghatampur-Hapur.

Incidentally, the Ghatampur project saw very aggressive bidding at the RfP stage with PGCIL being the only other contender in the race when the project ultimately went to Adani Group.

Very recently, Adani won the transmission scheme involving evacuation infrastructure for the upcoming 2×660-mw Obra-C thermal power project of state government utility Uttar Pradesh Vidyut Utpadan Nigam Ltd (UPVUNL).

Uttar Pradesh is seen to be very aggressive in recent years, in all aspects of the power value chain—generation, transmission and distribution. The northern state is gearing up to meet growing demand from both the industrial and household sector. Under the nationwide household electrification scheme “Saubhagya”, over 68 lakh households have been electrified since October 2017. This represents nearly 30 per cent of the 231 lakh households that have been electrified since the launch of Saubhagya.

UP is doing well to expedite its power generation projects and also step up household electrification. Its effort in accelerating the creating of power transmission infrastructure is a step in the right direction.

The author of this article, Venugopal Pillai, is Editor, T&D India, may be reached on venugopal.pillai@tndindia.com. The views expressed here are personal. 

Bihar: Too much reliance on Central government

Last week, NTPC announced that it has taken over a stressed power generation plant owned by the Bihar state government. The Central utility also announced that it has acquired full control of two joint ventures, in which Bihar government had equity stake. The two joint ventures are Nabinagar Power Generating Company Pvt Ltd and Kanti Bijli Utpadan Nigam Ltd.

Bihar should pursue JVs with private sector

Recently, Bihar Grid Company Ltd (BGCL) was in the news when lending agency Power Finance Corporation sanctioned financial assistance worth Rs.1,350 crore, representing the entire debt component of a Rs.1,688-crore transmission upgrade scheme. The project aims at constructing 16 transmission lines, four associated substations and seven line-bay extension works in the eastern state.